View more on these topics

Scottish Widows to launch master trust in £30m workplace pensions push

Social-Networking-Technology-Organisation-Chart-700x450.jpg

Scottish Widows is planning to launch a master trust.

As part of a 12-month, £30m plan to expand its corporate pensions offering into the workplace savings space, Scottish Widows plans to develop its own master trust –  a type of multi-employer scheme designed for auto-enrolment – to “offer greater choice to employers looking to restructure their pensions arrangements”.

The provider is currently discussing charges and availability but has not made a definitive decision on these yet, according to a spokesman.

The firm is also not committing to a date on when the master trust will go live within the 12-month workplace push.

The Government is currently looking to tighten regulations on master trusts through the Pension Schemes Bill, which will have to do more to prove they are financially sustainable after the number of master trusts has increased since the introduction of auto-enrolment.

The Bill will also give The Pensions Regulator greater powers to step in if it thinks a master trust is at risk of failing.

Sources familiar with the formulation of the Bill say that it was nearly derailed by Brexit workload pressures, but will now be pressed ahead.

Scottish Widows is also looking at offering a Lifetime Isa as part of plans to improve access to a wider range of workplace savings products, but is not committing to an April launch when the product is allowed on the market, according to a Scottish Widows spokesman.

Other providers including Hargreaves Lansdown and AJ Bell have confirmed they will also be launching an ISA.

Hargreaves has told Money Marketing it will be ready to launch on day one of the new rules, while AJ Bell will offer the Lifetime Isa on both an advised and non-advised basis as soon as possible after it becomes available.

The provider is also upping its investment in technology, developing a “dashboard” style single view for employees in a group personal pension to access and manage their drawdown options.

Asked about Scottish Widows parent Lloyds Banking Group’s reported plans to launch a robo-advice service, the spokesman confirmed the bank was “looking at it” and “speaking to various bodies” about their in-house views on the market.

Scottish Widows finalised the removal of exit fees on all of its pensions products last week, a move which will affect 31,000 customers but would have a “minimal” impact on the firm’s bottom line, according to the spokesman, despite there being “a lot of work to find out what the impact was going to be”.

Recommended

1

Scottish Widows scraps exit fees on personal pensions

Scottish Widows has removed early exit fees across its personal pension policies, going one step further than the 1 per cent charge cap that will be introduced by the FCA from 31 March. The insurer had previously announced that it would remove exit fees across all of its workplace pensions, and has now added personal pensions to […]

Merge-Mergers-700.jpg

Master trusts set for consolidation under tough new approvals regime

Experts are predicting significant master trust consolidation in the wake of tough new authorisation criteria outlined in the Pension Schemes Bill. The bill was published by the Department for Work and Pensions last week and sets out five criteria master trusts will have to meet. The criteria include that the scheme must be financially sustainable, that those […]

Is three a crowd?

The pension versus Isa debate has raged on and off for years. Les Cameron, head of technical at Prudential, asks if three’s a crowd.   I think the debate was arguably settled by pensions freedom when the biggest downside of pensions – limited access and poor death benefits – was fundamentally changed. Total access, albeit with […]

Neptune video: Indian valuations and Modi’s pro-investment agenda

Kunal Desai, Head of Indian Equities, discusses his expectations for the Indian market and highlights the key indicators that he is watching for 2015.

In the video, Kunal addresses:

• Indian equity valuations and the importance of stock selection in gaining exposure to the earnings upgrade cycle

• The BJP’s strengthening ambition in its pro-reform, pro-investment agenda

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com